Econ Test

Stocks and Bonds (04/8/ 2025)

Learning Targets

Distinguish between stocks and bonds

Explain the major stock markets and market indicators in the US

Differentiate between simple and compound interest

Stock Market: space where stocks are bought and sold

New York Exchange:

Stock Markets

Day Trading: begin in the morning and end in the evening

Occasional pauses ( ex. > 7% down in the market - pause for 15 mins )

Active Day: if indicators move up or down > 1%

Bear Market: market has stagnated 2 months ( or more) or constant drop of 20% or greater (selling)

Bull Market: Markets trading upward

^ encourages people to buy

Stock Broker: people purchase stocks through brokers (brokerage firms) who are go between - between, buyers and sellers

Market Indicators:

Dow Jones Industrial Complex: measure based 30 of the largest corporations ( in points and percentage) ex. down 250 pts or 15% )

Includes wealthiest 500 businesses

*National Association of Security Dealers Automated Quotation: tech industry

Buy:

people when there’s expectation of profit and and market health

Don’t Buy:

uncertainty

Sell:

alling market & market prices

uncertainty

Bonds

payment guaranteed in bonds but not stock market

IOUs : issued by corp or gov to consumes (loans)

3 parts

Par Value: (Principal/ face value)

Coupon Rate: (interest rate )

Term for maturity (timeframe for repayment)

April 17 NOTES 2025

Workforce: all eligible workers (igt) includes both employed and unemployed

exceptions: retirees, military, caretaker, discouraged workers - ( people without jobs who are not seeking work)

Employed: have a job (1 hr/ wk), work for family business ( even if unpaid and work *15/ wk )

Labor Trends - ( lake’s notes )

Workforce

Workforce refers to all eligible workers(16+), includes employed and unemployed

Exceptions:

Retirees, military personnel, discouraged workers*, caretakers

Discouraged Workers are people without jobs who don’t want jobs

Employed: Have a job( at least 1 hour a week), work for family business(at least 15 hours a week) ( paid or not)

Unemployed: No job but seeking work OR have work lined up in the future

Labor stats say unemployment should be between 4-6%

Labor trends

More services than goods

More technical

More automated

Require more tech skills

More international competition

Outsourcing: partnering specific parts of production to other companies

Offshoring: A portion of business operations are done in another country

Labor force more educated

More pursue degrees

The learning effect: employers favor those with more education because they’re presumed to do better/ have better work ethic

Divisions of labor ( April 22)

Unskilled Labor

Jobs that require no specialized skill (anyone can do it)

Hourly wage

Dishwashers, retail clerks, janitors

Semi-skilled Labor

Requires some special skill, training or education

Hourly wages

On- Job training

Forklift, Lifegaurd, Trucker

Skilled Labor

Requires specialized skill

Little direct supervision

Contract, salaried, or freelance

Operation of advanced equipment, artist, athletes, etc

Professional Labor

Requires specialized skill or education/knowledge

Salaried

Doctors, teachers, business managers, lawyers

Contingent work

Part time or seasonal work

Contracted for a limited term

Employers offer no benefits

Lower wages

Easier to hire/fire contingent workers

EEOC

Equal Employment Opportunities Commission

Forbids discrimination & mistreatment in workplace based on race, gender, disability, or religion

Difficult to enforcement